What is Model 721?
Model 721 is an informational tax return that must be filed by individuals and entities holding cryptocurrencies abroad, provided the total value of the cryptocurrencies exceeds 50,000 euros by the end of the year.
Who is required to file Model 721?
Individuals and entities who hold cryptocurrencies outside of Spain and whose total value exceeds 50,000 euros as of December 31st of each year must file this form.
What is the deadline to file Model 721?
The deadline to file Model 721 is usually between January and March of the year following the fiscal year in question.
What information is required on Model 721?
The form requires details on the balance, acquisition value, and any transactions made with cryptocurrencies abroad during the fiscal year.
What is the difference between Model 720 and Model 721?
- Model 720 is an informational return for assets and rights located abroad (bank accounts, properties, securities, insurances, etc.), and must be filed if the value of these assets exceeds 50,000 euros for each category.
- Model 721 is specific for declaring cryptocurrencies located outside of Spain and is only used for this type of asset, also if their total value exceeds 50,000 euros.
What happens if I don't file Model 721?
Failure to file Model 721 may result in penalties imposed by the Tax Agency.